Mortgages and Financing your dream home in Spain

At present there are many Banks and Financial Institutions throughout Europe, including the normal Spanish Banks, lending money for Residential and Commercial property purchase in Spain. All lenders will secure the loan on a property, either in your own country or on the Spanish property itself. Spanish banks and U.K. lenders arranging mortgages on Spanish property will lend a maximum of 70% of the purchase price to non-residents. Low interest rates , Interest Only Mortgages and Capital and Interest Mortgages are available.

There are both advantages and disadvantages to arranging a mortgage in Spain instead of the U.K. With a Spanish mortgage you will incur higher set up charges compared to the U.K. and many of the current mortgage schemes that U.K. lenders enjoy are not yet available. Some of the advantages Spanish lenders have over their U.K. counterparts are lower interest rates and flexible lending criteria that are designed for quicker application and completion times. You will also find only a handful of U.K. lenders arranging mortgages directly on Spanish property in comparison to the Spanish Banking industry as a whole.

The bank of your choice can arrange money transfers in Sterling or Euros at a relatively low cost. It is also advisable to speak to your new bank with regards to High Interest Sterling Accounts where your mortgage payments can be taken directly and converted on your behalf. There are also companies like Moneycorp or Foreign Currency Direct plc www.currencies.co.uk  who can arrange this for you.

Another important thing to consider prior to purchasing a property in Spain, or making a property investment in Spain is Spanish Tax Laws. These vary from U.K. tax laws and inheritance tax is a subject that should be taken seriously when deciding whose name the property should be registered in. In all circumstances we highly recommend qualified legal advice before you sign anything.

MazarronCasa, specialists in Costa Calida Property Sales